User Account

All Pages

Computing the return on the stock

Assignment Help Finance Basics
Reference no: EM13828181

Problem:

Assume that ABC stock is priced at $115 per share and pays a dividend of $2.83 per share. An investor purchases the stock on margin, paying $72 per share and borrowing the remainder from the brokerage firm at 10 percent annualized interest. If after one year, the stock is sold at a price of $129 per share, what is the return to the investor?    

Additional Information:

This question is from Finance and it is about calculation of return on stock. In this example, an investor purchases stock with personal and borrowed money. If the stock pays a good return after one year, calculate the return on the stock.

Reference no: EM13828181

Questions Cloud

What testing is available for a victim of rape : Q: What testing is available for a victim of rape? Is the testing same for both male and female victims? Why or why not?
What were the challenges : Share your experiences with inquiry learning in science. What were the challenges? How did you plan? What is different about inquiry lesson preparation
Questions regarding hedging the investments : As a portfolio manager, you are monitoring previous investments that you made in stocks and bonds of U.S. firms, and in stocks and bonds of Japanese firms.
Commonly used law office technologies. : Identify at least two (2) commonly used law office technologies. Next, explain the main reasons why computer skills are essential in law offices and court systems. Include one (1) example illustrating the essential nature of such skills to support yo..
Computing the return on the stock : Assume that ABC stock is priced at $115 per share and pays a dividend of $2.83 per share. An investor purchases the stock on margin, paying $72 per share and borrowing the remainder from the brokerage firm at 10 percent annualized interest.
Describe two iasb-aasb accounting standards : Discuss and describe two IASB - AASB accounting standards and the liability measurement approaches suggested, and the application to your selected annual report.
Relationship between proportion of funds borrowed : How would the return on a stock be affected by a higher initial investment (and lower loan amount)? Explain the relationship between the proportion of funds borrowed and the return.
Discuss postmodernism : Answer all three of the following questions. Cite at least one example in your response for each question. You should reference your book to help you answer these questions. If you use additional sources, you must cite them. Your answers should be in..
Calculation of return on stock : BBZ stock is priced at $80 per share and pays a dividend of $1.60 per share. An investor purchases the stock on margin, paying $50 per share and borrowing the remainder from the brokerage firm at 8 percent annualized interest

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd